Malta retains A2 Moody's credit score despite 'significant fiscal deficit' and corruption concerns

Malta has retained its A2 score in the latest review by Moody’s Ratings, an international bond credit rating service.

The country first achieved an A2 score in 2019. 

The May 2024 report explains that the rating is supported by Malta’s “moderate debt burden, a sound institutional framework, and reasonably diversified economy given its small size. The country's strong trend growth and a reliable domestic funding base are additional credit strengths.”

Another vote of confidence by Moody’s. They praise our moderate debt burden, sound institutional framework, and the country’s strong trend growth, well above the Euro area’s average. They give 🇲🇹 a stable outlook because of our “wealthy and fast-growing economy.” - RA

— Robert Abela (@RobertAbela_MT) May 25, 2024

The report is not all rosy, however. It notes that “a significant fiscal deficit due to a comprehensive policy response in terms of energy-related support measures and remaining concerns over the rule of law and control of corruption in the country,” as Malta's key credit challenges.

In a tweet on Saturday, Prime Minister Robert Abela welcomed the report as “another vote of confidence by Moody’s,” making no mention of the corruption or rule of law issues flagged by the report. 

Abela pointed out the agency’s praises for the country’s strong trend growth, which was described as “well above the Euro area’s average.” They give a stable outlook because of our “wealthy and fast-growing economy.”